PSU Banking stocks were buzzing on May 9, as select banks such as Union Bank of India and Canara Bank posted strong March quarter results that impressed investors. The Nifty PSU Bank index was trading with gains during intra-day deals, rebounding 3 percent from the day's low, bucking market trend which was weighed down by rising tensions between India and Pakistan.
Among the top gainers, shares of Union Bank of India jumped 7 percent to Rs 123 per share after the company reported strong performance in the March quarter (Q4FY25). The bank's standalone net profit rose 50.58 percent to Rs 4,984.92 crore in Q4. Its net interest income (NII) increased by 0.8 percent to Rs 9,514 crore.
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Union Bank also reported better asset quality compared to the previous quarter. Gross Non-Performing Assets (NPA) came down to 3.6 percent from 3.85 percent in the December quarter. Net NPA stood at 0.82 percent compared to 0.63 percent in the December quarter. The bank’s board recommended a dividend of Rs 4.75 per equity share with a face value of Rs 10 for the financial year 2024–25.
Canara Bank shares also rose over 2 percent to Rs 98 per share on May 9. The state-owned bank reported a 33.15 percent year-on-year increase in its standalone net profit, which came in at Rs 5,002.66 crore for the March quarter. However, the bank’s net interest income declined 1.44 percent year-on-year to Rs 9,442 crore.
Meanwhile, shares of Bank of Baroda recovered slightly after reacting negatively to its Q4 results. The stock was up 1 percent in intra-day trading on May 9. The bank reported a net profit of Rs 5,048 crore for the quarter, marking a 3.2 percent growth from the same quarter last year. Its net interest income fell 6.6 percent year-on-year to Rs 11,019 crore.
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